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Write the regression (prediction) equation: Dep_Var = Intercept + c1 * Ind_Var_1 + c2 * Ind_Var_2 + c3 * Ind_Var_3 The dependent - price of
- Write the regression (prediction) equation:
- Dep_Var = Intercept + c1 * Ind_Var_1 + c2 * Ind_Var_2 + c3 * Ind_Var_3
- The dependent - price of the home (HP).
- The independent variables square footage (SF), bedroom count (BR), bathroom count (BA) and age of the home (AGE)
- Define "adjusted R2," what does the value of the adjusted R2reveal about the model?
- Using the p-value approach, is the null hypothesis for the F-test rejected or not rejected?
- Using the p-value approach, is the null hypothesis for the t-test rejected or not rejected for each coefficient? Identify the variable with the greatest significance.
- Generate the correlation matrix. Define multicollinearity. Are any of the independent variables highly correlated with each other?
House | Price | Size | Bedrooms | Baths | Home Age |
1 | 919480 | 7670 | 8 | 5.5 | 1 |
2 | 848420 | 7190 | 6 | 4 | 5 |
3 | 841491 | 7030 | 6 | 4 | 8 |
4 | 793656 | 6530 | 7 | 5 | 3 |
5 | 793084 | 6800 | 8 | 5.5 | 6 |
6 | 706596 | 6600 | 7 | 5 | 7 |
7 | 694430 | 5900 | 5 | 3.5 | 10 |
8 | 667732 | 5570 | 5 | 3.5 | 4 |
9 | 667212 | 6110 | 6 | 4 | 8 |
10 | 558342 | 6160 | 6 | 4 | 7 |
11 | 547596 | 4920 | 6 | 4.5 | 2 |
12 | 546084 | 5910 | 6 | 4 | 10 |
13 | 537900 | 4890 | 6 | 4 | 7 |
14 | 523584 | 5050 | 6 | 4 | 10 |
15 | 496100 | 4510 | 6 | 4.5 | 17 |
16 | 487494 | 4380 | 6 | 4 | 6 |
17 | 478675 | 4660 | 5 | 3.5 | 9 |
18 | 466560 | 5760 | 5 | 3.5 | 3 |
19 | 459950 | 4680 | 4 | 3 | 8 |
20 | 453913 | 3660 | 6 | 4 | 18 |
21 | 448800 | 5280 | 6 | 4 | 8 |
22 | 445740 | 4370 | 4 | 3 | 5 |
23 | 416160 | 4080 | 4 | 3 | 12 |
24 | 416120 | 4040 | 5 | 3.5 | 3 |
25 | 410592 | 4200 | 4 | 3 | 9 |
26 | 404538 | 3290 | 5 | 3.5 | 14 |
27 | 393584 | 4660 | 4 | 3 | 7 |
28 | 393557 | 3180 | 4 | 3 | 20 |
29 | 392904 | 3400 | 3 | 2 | 8 |
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